Nick Scali lifts full-year profit

nickscaliFurniture retailer Nick Scali has lifted full-year profit 53.1 per cent to $26.15 million through a combination of improved same store sales and new openings.

Revenue for the 12 months to June 30 rose 30.4 per cent to $203 million after the full-year benefit of seven stores opened midway through the previous financial period, and a small contribution from two new stores in the reporting period.

The company reported its gross margins were slightly higher than last year despite the year on year decline of the Australian dollar.

Operating expenses increased by $14.8 million or 21.6 per cent attributed to the opening of new stores in FY15 and FY16, trading in Western Australia for the full year and head office resources.

“In addition to the pleasing increase in same store sales, the WA business which was launched in FY15 with three stores and a further store added in FY16, has made a significant contribution to the growth of sales and profit for FY16,” said Anthony Scali, Nick Scali managing director.

The company expects sales growth in 2016/17 to be “modest” compared to same store sales lift of 11.1 per cent in 2015/16.

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